Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3 First 100,000 Year 2 Second Third Fourth 130,000 190,000. 140,000 Budgeted production, in bottles The inventory of muskoll at the end of a quarter must be equal to 20% of the following quarter's production needs Some 80,000 grams of musk od will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2 Units of raw materials needed per urit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materiale to purchased Year 3 First 110,000 Mink Caress Direct Materials Dudget-Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Year
Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3 First 100,000 Year 2 Second Third Fourth 130,000 190,000. 140,000 Budgeted production, in bottles The inventory of muskoll at the end of a quarter must be equal to 20% of the following quarter's production needs Some 80,000 grams of musk od will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2 Units of raw materials needed per urit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materiale to purchased Year 3 First 110,000 Mink Caress Direct Materials Dudget-Year 2 First Quarter Second Quarter Third Quarter Fourth Quarter Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a small company in western
Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for
the first quarter of Year 3
First
100,000
Year 2
Second Third Fourth
130,000 190,000 140,000
Units of raw materials needed per unit of finished goods
Units of raw materials needed to meet production
Total units of raw materials needed
Units of raw materials to be purchased
Unt cost of raw materials
Cost of raw materiale to purchased
Year 3
First
110,000
Budgeted production, in bottles
The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs Some 80,000
grams of musk od will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oll, by quarter and in total, for Year 2
Mink Caress
Direct Materials Dudget-Year 2
First Quarter Second Quarter Thind Quarter Fourth Quarter
Year
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